Supreme Court Deals Devastating Blow to Employee Rights

May 29, 2018

On Monday, May 21, 2018, the Supreme Court of the United States sealed the fate of many low income hourly employees by ruling that companies can require employees to preemptively sign away their rights to bring class action claims against their employers. The decision in Epic Systems v. Lewis will make it particularly difficult for employees to band together as victims of wage theft, effectively precluding many of those employees from meaningful recovery. SCOTUS Green-Lights Class Action Waivers.

The decision has already had a dramatic impact on pending class action litigation. Within a matter of days of the ruling, Chipotle moved to knock approximately 3,000 employees out of an approximate 10,000 employee wage and hour class action currently pending against the fast food conglomerate. Chipotle claims that the 3,000 employees in question have preemptively waived their rights to bring class action claims against the company because those employees signed class action waivers before they began working. In that case, Chipotle has been accused of systemically forcing hourly workers to work off the clock and uncompensated. Chipotle Wage and Hour Violations.

If Chipotle is successful in moving the Court to follow the Epic decision, the 3,000 employees in question will be forced to individually pursue claims in arbitration. Arbitration is a less than ideal forum for the adjudication of wage and hour claims where an individual claim in controversy can be quite small. Prohibitive cost coupled with the inability to find an attorney willing to dedicate the time and attention to each of these claims will likely mean that many employees will suffer illegal wage loss for which there is no meaningful recovery. Companies, like Chipotle, will in turn benefit from free labor and lack of consequence.

Almost anyone who lives in the Seattle area is aware of the Seattle tunnel project. Recently, allegations of unprofessional and unsafe behaviors, and harassment on the project were reported to the WA State Dept of Transportation by a Seattle Tunnel Project (private contractor: STP) employee. The allegations assert that the supervisors of a carpentry crew were hostile, discriminatory, and featured a quid pro quo system of needing to bring alcohol to the foreman in exchange for perks (better shifts, overtime, etc). Furthermore, many employees would show up to work intoxicated, furthering the unsafe environment for the employees and the public.

Additionally, this employee reported episodes of sexual harassment, where a woman's supervisor solicited provocative photos via text messaging. King 5 investigated the situation and found many people who corroborated the allegations. Despite all of this, STP continues to deny any wrongdoing.

Unfortunately, the employee who brought the concern has since quit the company. No one should ever feel that quitting is their only option. If you feel you have worked or are working in unprofessional and unsafe environment, please contact us today!